Professional indemnity insurance (PII) is a type of insurance coverage that protects professionals, such as architects, consultants, engineers, accountants, and lawyers, against financial losses and legal liabilities that may arise from errors, omissions, or wrongful acts committed in the course of their professional activities.
For example, if an architect designs a building that later turns out to have a structural defect, and the building owner suffers a financial loss as a result, the architect's PII policy would provide coverage for their legal liability and any compensation that may be awarded to the building owner.
The purpose of PII is to give professionals the peace of mind to know that they have protection against potential financial losses and to help them maintain their reputation and credibility in the event of a claim being made against them. It is typically a requirement for many professions, especially for those who are providing services to clients and want to protect their financial interests.
No comments:
Post a Comment